Sub-prime-induced volatility was cited as the reason for the withdrawal of a five-year and 10-year euro-denominated transaction by Arcelor. The lead managers – Calyon, Citi, Commerzbank and RBS – sent out a terse statement saying that the borrower would return when stability returned.
The lead managers approached the market with price talk: mid swaps plus low/mid 30 basis points on the five-year and mid 60 basis points for the 10-year. This was seen as quite punchy for a triple-B rated steel company.
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